Today, 07:56 AM
You are correct that in the last 400 years it has grown exponentially. Which then arrives at my point: the trade we have today is quantitatively and qualitatively different than anything we have seen in the past. The quantity is obviously much higher and the nature is similarly much different. In the past, international economic competitive advantage was largely based on regional abundances of raw materials. Today, international economic competitive advantage is largely based on differences in labor costs. It was never historically feasible to save money on labor by getting it built 6,000 miles away and then transporting it.
It is far too early to say that trade is "good" for the economy. There are scenarios where trade is provably bad for an economy.* It also depends on how you define "the economy". If your interest is the economic outcome of the world as a whole, then yes, global trade is economically a good thing. If your interest is the economic outcome of your local economy, then no, it's not quite as clear as that (as proven in the scenario). It may very well be the case that modern trade, being based on short-term differences in labor costs vs other forms of economic advantage, is overall a detriment to a local economy.
Even if we do accept that trade is an overall economic good, that still does not make it however an overall net good. There are cultural, sovereignty, and security costs that come at potentially a heavy price with full global economic integration.
* (Scenario referenced above is at this link: http://www.ronpaulforums.com/showthread.php?566808-Tariffs-Are-A-War-On-American-Consumers&p=7231881&viewfull=1#post7231881)
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